Granite Secures $19 Million GMP Contract for Tahoe Cedars Water System Replacement Project
Granite has announced that it has reached a significant milestone in the Tahoe Cedars Water System Replacement Project after being awarded an approximately $19 million Progressive Design-Build (PDB) Guaranteed Maximum Price (GMP) 1 contract by the Tahoe City Public Utility District (TCPUD). The project represents a major investment in upgrading essential water infrastructure serving the Tahoe Cedars community on the west shore of Lake Tahoe, California.
The initiative is designed to modernize and replace aging components of the existing water system, many of which have exceeded their intended operational lifespan. Through the replacement of critical infrastructure and the implementation of modern water distribution technologies, the project aims to improve system reliability, strengthen public safety, and provide a sustainable long-term solution for residents.
The Tahoe Cedars Water System has served the community for decades, but aging pipelines and associated infrastructure have increasingly required attention to ensure dependable service. Recognizing the need for a comprehensive upgrade, TCPUD selected Granite to help deliver a resilient and future-ready water system through a collaborative Progressive Design-Build approach.
The first phase of the project, covered under GMP 1, includes several major infrastructure improvements. Among the most significant elements is the installation of approximately 15,000 linear feet of new water mains. These upgraded pipelines will replace aging sections of the distribution network and improve the overall efficiency and reliability of water delivery throughout the community.
In addition to the new water mains, the project includes the relocation of more than 200 existing water service lines. Relocating these connections will help integrate residential properties into the upgraded system while minimizing future maintenance requirements and improving service reliability for homeowners.
Fire protection is another critical focus of the project. The scope of work includes the installation of 29 new fire hydrants strategically positioned throughout the service area. These hydrants will expand fire protection coverage and improve emergency response capabilities, an especially important benefit in the Lake Tahoe Basin, where communities face elevated wildfire risks.
To further modernize the system, approximately 200 residential water meters will be integrated into the network. The addition of these meters will support more accurate monitoring of water usage, enhance operational efficiency, and help identify potential leaks or system losses more quickly. Improved data collection and monitoring capabilities will also support long-term water conservation efforts and provide greater insight into system performance.
According to Granite, the successful establishment of GMP 1 reflects the strong partnership and collaboration that has developed among all stakeholders involved in the project. The Progressive Design-Build delivery method encourages early coordination between the owner, designers, and contractors, allowing teams to align project objectives, costs, and schedules before construction begins.
Chris Burke, Granite Vice President of Regional Operations, emphasized the importance of teamwork in achieving this milestone. He noted that reaching the Guaranteed Maximum Price was made possible through a collaborative process built on trust, transparency, and shared goals among project participants.
Burke highlighted Granite’s experience in delivering Progressive Design-Build projects and its commitment to working closely with project owners to establish realistic budgets and timelines from the earliest stages of development. This approach helps reduce uncertainty, improve project outcomes, and ensure that infrastructure investments deliver long-term value for communities.
Beyond replacing aging infrastructure, the Tahoe Cedars Water System Replacement Project is expected to generate substantial benefits for the community. One of the primary objectives is to improve the reliability of water service by replacing deteriorating pipelines and upgrading system components. These improvements will reduce the likelihood of service interruptions and help ensure a consistent supply of clean water for residents.
The project will also help reduce water loss within the system. Aging infrastructure can contribute to leaks and inefficiencies that result in significant water waste over time. By installing modern pipelines and monitoring technologies, the upgraded system will improve operational performance and support more responsible water management practices.
Enhanced fire protection capabilities represent another major benefit. The Tahoe Basin region has experienced increasing wildfire concerns in recent years, making infrastructure resilience and emergency preparedness top priorities. The addition of new fire hydrants and improved water delivery capacity will strengthen the community’s ability to respond to fire emergencies and support local firefighting efforts.
The new water system is being designed to meet current regulatory requirements while also accommodating future growth and changing community needs. Project planners have focused on creating a resilient infrastructure solution that can adapt to evolving demands and environmental conditions over the coming decades.
Once completed, the upgraded water system is expected to provide a service life of at least 50 years. This long-term durability will help reduce future maintenance costs, improve operational efficiency, and provide reliable water service for generations of Tahoe Cedars residents.
Construction activities associated with GMP 1 are scheduled to begin in mid-June 2026. The initial phase is expected to be completed by October 2026, marking the first major step in a broader infrastructure modernization effort.
The Tahoe Cedars Water System Replacement Project is planned as a four-year construction program, with GMP 1 serving as the foundation for future phases. As work progresses, the project will continue to advance TCPUD’s commitment to delivering reliable, sustainable, and resilient water infrastructure while supporting the long-term safety and well-being of the Tahoe Cedars community.
Through this investment, Granite and TCPUD are laying the groundwork for a modernized water system capable of meeting current needs and future challenges, ensuring that Tahoe Cedars remains a safe and sustainable community for decades to come.
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